Auto insurance for teens can be a tricky thing. Part of the reason is because teens are considered high risk drivers and the insurance rates for high risk drivers tend to be higher. They are not high risk because they are more reckless than adult drivers. There are actually adult drivers out there who are more reckless than a lot of teens. It is just the fact that teen drivers are inexperienced that causes their rates to be higher. As they get older, the rates will go down. However, that doesn't do much for them or their parents during their teen years.
Facts about auto insurance
There are certain factors that lead to the higher insurance rates. Those factors are age and gender. Unfortunately, insurance rates are higher for males than they are for females because males tend to display more reckless behavior. The truth is that a lot of insurance companies consider drivers under the age of 25 to be high risk. That means the rates see a boost of anywhere between 50% and 100% of what the premium would be if they were over the age of 25.
Fortunately, parents can get a break on their teen's auto insurance. Since they cannot do anything about age and gender, they can do something about the level of experience of the young driver. There are actually courses that are offered for teenage drivers that can enhance their experience. Upon successful completion of these courses, the insurance rates can go down.
Another thing that is taken into consideration is the town in which the teen is driving and the type of car that they are driving. If the town is a small town, the rates will most likely be lower than that of a large town. As for the type of car, it is a given that the insurance on a sports car is going to be more than that of a coupe. The rates are also going to be higher on a new car than a used car. It is always a good idea to get a teen a used car to start out with and invest in a new car later when the driver has more experience and is older.
How to save some money
Parents can save money on car insurance if their teen has better than average high school or college grades. Insurance companies will offer a good student discount as long as the student's grades are turned in every time they come out. If grades slip, then the discount may not be applied, but if grades go back up, the discount can be reinstated. This is definitely a useful discount to take advantage of. It rewards the parents in the form of being able to save money. If the teen has a job and pays their own car insurance, the teen gets to take advantage of their good grades even more. It is always good to check with the auto insurance company about this type of discount.
You can also have certain safety devices installed on the car such as antitheft gadgets, antilock brakes, and other safety features. But the most effective way in which you're going to save money on auto insurance for teens is to look into getting online auto insurance quotes from various companies on the internet. This will enable you to spot those rates that will be the best for you and your family. You can do side-by-side comparisons so that you know which policy has everything you need for the best rate. There are just so many tools, discounts, and programs available for you to save money. It is just a matter of knowing that they are there.
Get an accurate car insurance quote and compare it with those of the competition in just one click.